And if I’m wrong and everyone is actually doing it, how is it sustainable in the long run? I mean, we can’t all be millionaires.
And if I’m wrong and everyone is actually doing it, how is it sustainable in the long run? I mean, we can’t all be millionaires.
A large number of us CAN be millionaires. Which is a problem.
It took me roughly 40 years to become a millionaire. 40 years of investing in stable stocks and bonds and scrimping and living well below my means. I was finally able to afford to buy a house. Then the market boomed and suddenly I’m worth over a million.
Unfortunately, almost all of that is tied up in owning a small plot of land. If I sold it, I’d need to immediately use it to buy another small plot of land, or leave my city or go back to extortionate rent. And yet I need to pay monthly taxes on that land, or I no longer own it.
Where I used to spend $90/month on food, now I spend well over $500/month.
Essentially, if you’re over 55 and you’re not a millionaire and you’re living in a major city, you’re screwed because of inflation.
It’s actually technically correct that we all can be millionaires, at least on a household basis. The mean household wealth in the US was $1.06 million as of 2022, by now it’s undoubtedly higher. So with a full redistribution of wealth every household would have over $1 million.
In reality though the median household wealth is just under $200k as of 2022, and doesn’t rise as consistently so who knows where it is now.
Such Boomer thought, why would someone younger than 55 have better chances?
They’re saying that if you’re 55 and in that situation you are in trouble as you’re running out of time to get out of the situation. In your 30s it might not be great compared to previous generations, but you still have time to turn things around.